TaxTMI 
TaxTMI 
2010 (4) TMI 568
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....d in the show-cause notices issued which resulted in the impugned order is from 1-12-2002 to 31-12-2007. The Service Tax demand has been confirmed and penalties have been imposed on the ground that the appellants undertake the activity of manufacture and supply of hologram labels. The manufacturing process of hologram label involves laser photography and therefore, the activity undertaken by the appellants would be covered under 'photography service.' 2. Heard both the sides and perused the records. 3. Since, after hearing both the sides, we find with the matter that certain important aspects of the issue have not been considered and therefore, the matter is required to be remanded, for the reasons which we have given in the order sub....
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....ould) to numerous copies using chemical processing which is similar to electroplating. The copies are known as shim holograms. These copies are actually used for the mass production of security holograms. No laser is used. Step 3 Embossing This delivers millions of security holograms from the copy shim hologram on a metallic film surface using thermal pressure impression. No laser is used Step 4 Gum coating/application This gives gum coating on the non-image metallic film surface, which in turn applied to the wax coated paper. No laser is used Step 5 Slitting/dye cutting This delivers final product of security hologram in the custom made dimension, using mechanical slitting and dye cutting systems. ....
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....phic paper. The activity of manufacture of mould by using laser device is covered by laser photography and it can be compared to either a digital image or to the negative in the conventional photography followed in the earlier days. In this case, since a large number of holograms are required to be produced from the mould, by using the technique of electroforming, numerous copies are made using chemical processing which is similar to electroplating and these copies which are known as shim holograms are used for production of security holograms. These shim holograms can be compared to the negatives of photographs which were earlier being used to make the positive images of photographs. Since, appellants admittedly manufacture shim holograms ....
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....nce of use of laser device in the activities undertaken by the appellant, whether appellants can be considered to have rendered photographic service has not been examined by appreciating the facts correctly. Further, the fact that the excise duty is being paid by Process Color for the activity of reproduction of holographic labels by using shim hologram has also not been taken into account and the implications of payment of excise duty on liability to service tax on these activities has also not been considered. While the Commissioner has considered the manufacturing process of holographic labels in detail and a lot of technical detail have been incorporated, the most important aspect viz., whether the activities undertaken by the appellant....